It is interesting to note that while the above clause was interpreted by the Court as a force majeure clause
, it did not expressly include the words "force majeure".
The fact that a contract is now uneconomic or commercially impractical because it has become greatly more expensive (for example, as a result of a huge increase in raw material or production costs) is almost never within a force majeure clause
When force majeure clauses
are negotiated by the parties, they normally define the trigger events under the clause (most commonly "acts of God," flood, fire, war, civil disturbance, embargoes, labor strikes, governmental actions, and terrorist acts) and the notice required to invoke the force majeure clause
However, New York Courts take a strict view of force majeure clauses
These examples show that force majeure clauses
usually provide for an extension of the contractual performance period and the cancellation of the contract as a measure of last resort.
Implied by civil law, and sometimes added as an afterthought to domestic franchise and other agreements, force majeure clauses
have become critical in evaluating rights and duties of businesses since Sept.
The legal theory supporting the use of force majeure clauses
is that neither party should be responsible for cancellation or other loss caused by events outside the affected party's control.
A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including the following: Anadarko's ability to successfully meet its production and capital expectations, complete, test and produce the wells and prospects identified in this news release; the length of the deepwater drilling moratorium in the Gulf of Mexico; Anadarko's ability to successfully reallocate resources to onshore properties, if implemented; increased regulatory and permitting burdens with respect to offshore prospects and Anadarko's ability to successfully invoke the force majeure clause
with respect to its contracted rigs in the Gulf of Mexico.
I've definitely been paying far more attention to the way the force majeure clause
is written and trying to see that it's written as broadly as possible," she says.
Separately, the Company said that its Chlor Alkali Products business has invoked the force majeure clause
in its chlorine contracts with customers because of equipment problems at its McIntosh, Alabama, facility that could lower production rates for a 2- to 4-week period.
Contracts typically include a force majeure clause
, which allows cancellation without penalty under certain circumstances.
In a letter dated June 17, Northwest notified the union that the airline intends to eliminate 700 more mechanics positions, claiming that SARS-related drops in transpacific traffic justify invoking the force majeure clause
of its labor contract.